Initial Financial Coaching Questions to Start the Client Relationship

One of the key traits of a distinguished financial coach is being able to clarify the root causes behind a client’s financial issues. By “root causes,” we mean underlying factors that contribute to an individual getting off-track toward reaching his or her goals. For example, clients might tell you, “I want to save more money,” and you could help them create savings plans. But it would be more helpful to clients in the long run if you identified the factors that get in the way of saving money: Do they lack a workable budget? Do they overspend in certain areas? Is their income too low? Financial coaches who are skilled at determining root causes – and helping clients address them – stand out above the average coach.

A big part of determining root causes of any problems is learning about a client’s emotional relationship with money, which can be referred to as that person’s “financial psychology.” First, what were the client’s reasons for seeking out a financial coach? What were the pain points or cherished goals that spurred a client to reach out for help? You also want to know their feelings and attitudes toward handling money, and how confident they feel about making financial decisions. And you need to clarify how willing and motivated they are – in the present moment – to make change. These are some of the client questions that characterize adherence to top financial literacy standards.

Analyzing where clients stand across indicators of financial wellness is part of how financial counseling can help people. In order to paint a full picture of a client’s financial situation and uncover the root causes and sequences of behavior that contribute to any problems, financial coaching questions need to touch on all those indicators. That process will involve looking at clients’ checking and savings accounts, pay stubs, asset and liability documentation, debts, insurance coverage, and tax filings – all the key information that goes into an individual’s complete personal finance picture – and performing financial coaching ratios and calculations to generate a custom plan.

Once the coach has asked the right financial coaching questions and clarified a client’s goals and financial status, he or she can make informed recommendations about the action steps and financial counseling educational resources that will help the client down the road to financial health. This is the next step in the coaching process, after the initial in-depth interview is complete and the coach has analyzed the client’s situation and diagnosed the root causes of any issues.